ASSESSMENT: Strategic Human Capital Management

Word Limit: 3500 Words.

QUESTION

(1) Case 1 - Maya Toys Inc, is involved in manufacturing of children's toys since 1990 and they have been in business for more than two decades. Maya Toys are the most wanted play stuff among parents for their children as these toys complies with all safety regulations and it has been a house hold name especially for newlyweds and young couple who are having their first child. Stores around town run out of stock during festive seasons and people queue and orders are made three months ahead at times.

But in recent time, since mid 2010 the sales volume has drop tremendously after an incident in the manufacturing plant where an explosion killed 5 female workers who were mothers. The employee union has taken the case against the company citing the following;

(a) No safety rules was available for the employees

(b) The company did not follow or train employees on safety measures

(c) Safety gadgets were not working

(d) Campaign "SAY NO TO MAYA"

In court the company won the case and item (a), (b) & (c) above was proven as wrong allegations by the company; however, the campaign did not stop to date. People became skeptics and started avoiding Maya toys. However, the company did not stop manufacturing but continued to counter the anti Maya campaign through enhancing engagement activities especially in CSER internally and externally.

After the incident during the last season Maya experienced a drop of 58% in sales and people moved on with other brands. A recent market survey of toys market clearly states that Maya is losing its edge among parents and if this continues in 2011 there is a further possibility that Maya's sales volume will further drop by 12%.

The revenue of Maya dipped making its operating profits to 3% in 2010 compared to its previous years 2006 at 7.8%; 2007 at 7%; 2008 at 8%; 2009 at 8% and 2011 is questionable.

Creditors are also not in favor of long credit terms where the company had some suppliers giving them 4 months credit terms. In recent times these creditors and suppliers wants a change in their agreements where credit deposits are required and this is also affecting the financial situation of the organization.

In February, 2010 Safety Toys Inc., open a plant in the same vicinity and now Maya is affected by staff pinching whereby their skilled labor is being moving to Safety toys. Maya experience a turnover of 50% in September 2010 where 43% of this employee joined Safety and the balance 7% remained home. Members of the neighborhood have now formed a task force to educate women working in the manufacturing plants to seek additional benefit.

The Union on the other hand stopped its negotiation for a new collective agreement and threatening to strike.

Maya at its last Board & Senior Management meeting have addressed that they need to act fast to counter all external and internal aggressions so that Maya can continuously be in business.

You are required to simulate a biz case with the above information and address the following issues;

(a) Analyze Maya's situation at the moment and how will you advise the Senior Management to overcome the current scenario?

(b) How will you plan, design and develop a program that would leverage Maya's stand in the industry attracting back skilled labor?

(c) How will help in re-branding Maya?

(d) What changes must Maya conduct to attract community the confidence of the community?

(e) In your opinion should Maya go on a MBO or offer of sale?

(f) What could be the main reason people are not staying with Maya?

(g) What will your Biz Continuity Plan using Human Capital to gain the market share which Maya has lost?